The Role of Perceived Risk in Sustainable Consumption Contexts - Essay Example

The role of perceived risk in sustainable consumption contexts Introduction Approximately one hundred and fifty million people enter the middle social class each year, and this phenomenon will maintain until 2030 (Blackwell, Miniard and Engel 90). The demand for social amenities and luxury goods such as water, energy and cars will increase at the approximately 45 percent annually. Car manufacturing companies, in collaboration with the environmental protection agencies, have developed a hybrid car. According to Swanson, hybrid cars combine features of both electric motors and gasoline engines to improve fuel consumption and provide additional auxiliary power for electric tools and devices (11). Research and development projects have found out that most car demanders have perceived risks about hybrid cars; however, marketing can address the perceived risk barriers to change the attitudes of consumers towards these vehicles. Barriers Associated with Perceived Risk in Decision-making for Hybrid Cars The first barrier associated with perceived risk is lack of warrants. Hybrid companies do not give customers warrants in most cases. This causes lack of guarantee among the customers concerning the functionality of the hybrid cars. Consumers find it difficult to trust hybrid cars because they are not afforded some period of protection should the car fail to meet all dimensions of product quality (Blackwell, Miniard and Engel 101). Sometimes, hybrid car manufacturers offer extremely short period of warrants, which leaves consumers with doubts; customers tend to belief that the reason for this is that these cars could be having short Mean Time To Repair (MTTP) periods. Additionally, hybrid manufacturers fail to avail information concerning earlier purchases that could encourage customers to buy these cars. According to the social learning theory, human beings are naturally attracted to things that society members demand most because they believe that many people demand good things. Car buyers hold a belief that the speed and distance covered by the hybrid cars leads to excessive consumption of fuel and energy during driving. The general assumption is that the higher the speed, the more the engine consumption of fuel. Car consumers, therefore, have a perception that these cars may cause them spend more on fuel than they could spend in conventional cars. The hybrid cars typically attempt to increase the mileage while overcoming the shortcomings of an electric and gasoline car. Apart from the energy costs, hybrid cars are believed to cause accidents easier than conventional cars. The braking system of a hybrid car is automatic and highly sensitive to slight paddles. Drivers believe that this may encourage them to over-depend on emergency brakes, which may expose them to fatal accidents. The root causes of these perceptions are lack of proper information and false generalizations. Marketers and manufacturers have not invested in consumer education to ensure they have clear knowledge of hybrid cars and their functionality (Blackwell, Miniard and Engel 80). Despite hybrid cars being environmentally friendly and offering great savings on gas than their conventional counterparts, they are associated with several risks. Hybrid cars have gigantic sizes and high voltage batteries. When accidents occur, the high voltage batteries pose a risk of causing acid spills and electric shocks. The force involved in accidental collision or falling of cars causes the high voltage batteries to burst and spray hot acids. Acids may lead to burns of victims while shocks may make it difficult for volunteers who are attempting to save the victims. Sometimes excessive sprays of acids and shocks lead to fires that burn the whole car and victims who might not have escaped. Further concerns arise from the fact that the large battery pack at the rear can accumulate up to 300 volts (Swanson 27). The cables connecting this battery to the engine may rupture or leak and deliver a nasty wallop. Marketing Recommendations to Address the Perceived Risk Barriers Hybrid car manufacturers need to extend warrants and guarantee payments and repairs if the cars fail to perform according to consumer expectations. Warrants are usually given by the company, and assure the customer repairs and replacements if the car breaks down before the warrant period expires (Solomon, Bamossy, Askegaard and Hogg 23). Hybrid car dealers can dispel fears and perceived risks among the consumers by offering warrants for at least three years. Availability of warrants gives consumers’ confidence that the cars will not fail, and if they fail, the manufacturer will be ready to help fix the problems. Hybrid car manufacturers should increase the length of the period that they warrant their cars in order to dispel all fears from consumers and prospective customers. The guarantees help in overcoming the consumers’ functional perceived risk. Hybrid car manufacturers should collect data from earlier purchasers and users of their cars, and avail this information to customers for viewing. A customer can easily believe the information from other customers and people who have actually used the product (Blackwell, Miniard and Engel 107). The companies can also show to prospective customers the number of hybrid cars that have already been sold. This gives consumer’s confidence because of the belief that a product that is demanded by many has desirable features of quality. Customers’ perceived risks about possible accidents by the hybrid cars arise from lack of understanding that hybrid vehicles generate electricity. Marketing departments should assume the responsibility of describing the fuel consumption features of a hybrid car. The electric motor of the car provides additional power to assist the engine in passing and hill climbing (Swanson 13). Concerning the emergency breaking system, the electric motor causes to slow down through automatic resistance when the car is on a drive train. The speed of resistance matches the speed of the moving car and cannot cause excessive emergence standoff when braking. The energy from braking system is preserved in a battery until needed by the electric motor. The marketing function need to assume the role of consumer education through corporate visits, motor shows, and workshops to enhance consumer knowledge. Lack of consumer knowledge leads to fallacious thinking and generalizations; these are in most cases not true about the product (Blackwell, Miniard and Engel 88). Marketers have the responsibility of revealing to the marketers that hybrid cars have protective features meant to minimize the adversities associated with the perceived risks. The marketers should enlighten both prospective and current consumers that the hybrid car’s battery is placed at the back of the vehicle. The structure of the car and its location is such that it is well protected from electric shocks when accidents occur (Swanson 23). The technological advances with which the hybrid cars are made ensure that even if the car is damaged when involved in an accident the acids will not spill out like in conventional lead acid batteries. The product quality of the hybrid car is to ensure that all dimensions of product quality. The technology with which the hybrid car battery is manufactured maintains the electrolyte liquid in paste form that minimizes unwanted spills (Swanson 18). Concerning electric shocks, the car contains safeguards like automatic cutoffs when the car system detects leakages. The automatic cutoffs are meant to maintain safety of the car and protect passengers during accidents. Conclusion New products, services, and extended value chains will be critical in satisfying the needs of the next generation in a sustainable manner in order to embrace absolute sustainability. The World Economic Forum has collaborated with its partner companies to explore possible strategies for engaging consumers to ensure sustainability of consumption patterns and create business value. Most middle class level consumers have revealed widespread demand for cars. The hybrid car manufacturers should invest in marketing strategies intended to enlighten customers about the workability of the vehicles. The marketing function should focus on dispelling the perceived risks among the consumers. Works Cited Blackwell, Roger D, Paul W. Miniard, and James F. Engel. Consumer Behavior. Mason, Ohio: Thomson/South Western, 2006. Print. Solomon, Michael R, Gary J. Bamossy, Soren Askegaard, and Margaret K. Hogg. Consumer Behaviour: A European Perspective. New York: Pearson Education, 2013. Print. Swanson, Jennifer. How Hybrid Cars Work. Mankato, Minn: Child's World, 2012. Print. Read More